Since 2002, our brilliant team of lawyers has helped many business owners successfully resolve internal shareholder disputes and help protect their shareholder value. Whatever your needs, our team has it covered. Speak to one of our team for a free consultation.
When disagreements arise between shareholders, the consequences can be serious for both the individuals involved and the company itself. At Francis Wilks & Jones, we have over 20 years’ experience helping shareholders, directors and businesses resolve complex ownership and management disputes.
Our team of shareholder disputes solicitors’ regularly act in claims involving unfair prejudice, derivative actions, board deadlock, dividend disagreements and director removal. We understand the personal and financial pressures these conflicts create and work quickly to achieve a practical outcome whether through negotiation, mediation or, where necessary, court proceedings.
From small family-run companies to large private groups, we have guided hundreds of clients through disputes that could otherwise have destroyed long-standing relationships or the value of the business.
What are the most common causes of shareholder disputes?
Shareholder disputes often start with differences over how a company is managed, who controls the board, or how profits are distributed. Other triggers include the issue or transfer of new shares, breach of a shareholders’ agreement or breakdowns in family-run businesses.
Disputes with management
Disagreements about company direction or strategy are among the most frequent causes of shareholder conflict. We help directors and shareholders find solutions that protect business value.
Family business and succession disputes
Family-run companies face added pressure when ownership and personal relationships overlap. Our lawyers balance commercial needs with family dynamics to keep the business stable.
Non-payment of dividends and unfair payment policies
Shareholders are entitled to fair treatment when profits are distributed. We advise on challenging or defending dividend decisions and avoiding costly litigation.
Director removal
Disputes often arise when shareholders want to remove a director but lack agreement on the process or the impact on company control. We help clients follow the proper legal steps to avoid claims of unfair prejudice or breach of duty.
How can minority shareholders protect their rights?
Minority shareholders can feel powerless when majority owners make decisions that reduce their value or influence. Under section 994 of the Companies Act 2006, a shareholder may apply to court if the company’s affairs are being conducted in a way that is unfairly prejudicial to them.
Minority shareholder and unfair prejudice claims
We guide minority shareholders through every stage of an unfair prejudice claim – from assessing the conduct complained of, to negotiating buy-outs or court-ordered remedies.
Shareholder rights
Understanding your rights is key to preventing disputes before they escalate. We advise on voting powers, information access, dividend entitlements and pre-emption rights on share issues.
When can shareholders take legal action on behalf of the company?
If directors breach their duties and the company itself fails to act, shareholders may apply to bring a derivative claim under section 260 of the Companies Act 2006. The claim is made in the company’s name and requires the court’s permission.
Derivative claims
Typical examples include misuse of company funds, related-party transactions or conflicts of interest. We prepare detailed applications to secure court permission and manage proceedings efficiently.
What options exist when shareholders or directors are deadlocked?
Deadlock between equal shareholders or co-directors can stall every decision and threaten the company’s survival. FWJ helps clients use mediation, expert valuation or structured buy-outs to restore progress. In some cases, a winding-up petition may be the only realistic option.
Shareholder deadlock
Many businesses are set up with two individuals holding an equal amount of shares. When those two people fall out or want to take the business in different directions, the consequences can be serious. Early action to fix the situation is vital – otherwise the business can fail, and the company shares become worthless.
Our team regularly resolves deadlock situations for clients, normally by negotiation and mediation, but if required, more formal court intervention or litigation.
Just & equitable winding-up petitions
Where relationships have irretrievably broken down, a shareholder can petition the court under section 122(1)(g) of the Insolvency Act 1986. We advise on when this remedy is appropriate and how to avoid unnecessary value loss.
Business exit, share sales and valuation disputes
Sometimes a negotiated exit or fair valuation is preferable to litigation. Our team ensures fair pricing and smooth transfers, preserving business continuity.
Company insolvency problems
When a company faces financial difficulty, shareholder tensions can quickly increase. We help directors and investors understand their duties and protect their interests through restructuring, administration or liquidation.
Legal costs and funding your shareholder claim
People rightly ask how any shareholder claim can be funded. Our team have decades’ experience dealing with shareholder claims and finding the right funding option for any client. It could be the company itself will pay the fees via a derivative action. Alternatively, we can explore fixed fee arrangements with you or some form of deferred fee arrangement – such as a contingency fee or conditional fee arrangement. We can also look to obtain insurance for you to pay the other sides legal costs.
How Francis Wilks & Jones can help you move forward
At Francis Wilks & Jones, our partners combine deep technical knowledge with decades of practical experience resolving shareholder and director conflicts across England & Wales. We focus on achieving swift, commercial outcomes that protect both personal investment and business value.
Francis Wilks & Jones were responsive, available at all times to deal with any of my queries and very reassuring. I would definitely recommend them to deal with proceedings brought on behalf of shareholders – they understood our practical needs.
A shareholder we helped bring unfair prejudice proceedings against a fellow shareholder who had been interfering with the management of the company and damaging its value
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